Which of the Following Are Weaknesses of a Command-Based Economic

question 25

Multiple Choice

Which of the following are weaknesses of a command-based economic system? ​

• A) ​It is not possible for goods to be allocated based on need rather than based on willingness and ability to pay.
• B) ​Producers have incentives to innovate because successful innovators are not rewarded with higher profit.
• C) ​Since price is set by central planners, price cannot freely adjust to resolve shortages or surpluses based on current supply and demand conditions.
• D) ​Answers b. and c. above are correct.